Malaysia Hotline: +603- 2141 8908
All
foreign owned companies in Indonesia are classified as PT PMA-s (stands for
limited liability company with foreign direct investment). A company is a PMA
as long as any of the shares are owned by foreigners.
An
exception is representative office where foreign company is exploring business
opportunities in Indonesia and is not generating any income from local
activities.
Foreign
companies that cannot or choose not to meet the foreign ownership requirements
can set up a Nominee Company instead.
Foreign ownership limitations
Maximum
foreign ownership varies from 0 to 100% and depends on the business
classification. The document regulating restricted industries is Negative
Investment List (DNI) and it is updated every few years. Next one is expected
to be released in November 2013 and is rumored to be more open than the
previous one.
Minimum capital and investment plan
BKPM
(Indonesia Investment Coordinating Board, bureau that is approving foreign investments)
requires foreign owned companies to present an investment plan for at least Rp.
10.000.000.000 or its amount in USD following current exchange rate. This is a
plan and once the PT PMA is registered you will need to start reporting the
investment activities every 3 or 6 months depending on your licenses. Minimum
25% (Rp. 2.500.000.000 or its amount in USD) of the investment plan needs to be
paid up as capital.
Investment
plan can be either cash or fixed assets such as machinery. Land and buildings
are excluded from the amount.
Shareholders and corporate structure
Every
limited liability company needs at least two shareholders. Those can be either
individual or corporate shareholders. In your investment application you will
state the amount of shares that will go to each of the shareholder. Minimum
shares a shareholder can hold is at least amounted to Rp. 10.000.000,
additionally you will need to appoint at least one commissioner and director.
Business location
Indonesia
is a decentralized country and a lot of the government’s work is done at
district level. This means that you will need to decide already before
submitting investment application where your business location will be and
provide a domicile letter from building owner.
Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours Hong Kong hotline：86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my